Shareholders of UAC of Nigeria (UACN) Plc on Wednesday approved the sum of N1.861 billion recommended as dividend for the year ended December 31, 2017.
The dividend, which translates to 64.58 kobo per share was approved by the shareholders at the annual general meeting (AGM) in Lagos.
Also, the company unveiled plans to implement initiatives that would help restore the firm on the path of consistent growth trajectory and drive future profitability.
The company noted that notwithstanding the improvement in the overall economic climate in 2017, the company’s performance was disappointing, with tepid growth, declining margins, which result to poor share price performance.
Speaking to shareholders, the chairman of the company, Dan Agbor explained that group’s revenue grew from N82.6 billion in 2016 to N89.1 billion during the period under review representing a growth of eight percent. However, profit after tax declined from N5.6 billion to N963 million during the period under review.
Agbor however assured shareholders that the board would tackle the causes of the declining performance and implement initiatives to drive future growth and profitability this year.
Furthermore, he announced that decision to wind up the Warm Spring Waters Nigeria limited due to weak operational performance as earlier approved by shareholders.
He added that the management is currently conducting a detailed review of the business strategy to enhance value creation.
On the company’s rights issue, he noted that the 960.43 million shares were issued at the price of N16n which recorded 104.5 per cent subscription level reflecting shareholders strong confidence in the company, adding that some of the subsidiary companies also undertook successful rights issues during the financial year.
He assured that the proceeds of the rights issue are already being applied for the intended purposes and will ultimately improve shareholders value.
He added that the 2018 financial year is a transitional year, in which the board will begin to tackle the root causes of the company’s historical declining performance and implement initiatives to drive future profitable growth.
The chairman stated that the company will focus on specific areas, which are capital allocation and portfolio composition, human capital, operating company and most importantly reinforcing a Group-wide of accountability and responsibility, saying that “we will also seek to better link employee compensation to the creation of long-term shareholder value.”
He also noted that the company went through a smooth leadership succession at the end of 2017, saying that Mr. Larry Ettah, who had led the company as Group managing director/chief executive officer since 2007, proceeded on his pre-retirement leave with effect from January 1, 2018, saying that after a rigorous selection process, the board appointed successor in Mr. Abdul Akhor Bello, the immediate past executive Director/chief financial officer of the company.
